Germany presses UniCredit for guarantees on Commerzbank's future
Germany's finance minister met UniCredit's CEO to seek assurances over Commerzbank's future as the Italian bank nears completing a takeover. Berlin insists the lender must remain listed and headquartered in Frankfurt.
German Finance Minister Lars Klingbeil met with UniCredit's chief executive on Monday to seek guarantees over the future of Commerzbank, as the Italian bank moves closer to completing a takeover of its German rival.
In a statement issued after the meeting, Klingbeil said it was of paramount importance to the federal government that Commerzbank continue fulfilling its vital role in financing the German economy. He said Berlin expects the bank to remain listed and headquartered in Frankfurt, maintaining its strong focus on financing small and medium-sized businesses.
Talks enter a new phase
Despite fierce resistance from Berlin and Commerzbank itself, UniCredit has built a stake of nearly 50% in the German lender and is nearing one of Europe's largest banking mergers in recent years. A finance ministry spokesman acknowledged the two banks had entered a different phase of negotiations, while stressing that Klingbeil wants to ensure the interests of both Commerzbank and the country are protected. He noted that Commerzbank employs more than 40,000 people whose interests the government wants safeguarded.
Berlin still holds some influence over the outcome through its seat on Commerzbank's supervisory board and its roughly 12% stake in the bank, both dating back to a state bailout during the financial crisis. However, that leverage is likely to be diminished given the scale of UniCredit's holding.
Path toward takeover
UniCredit began building its stake in Commerzbank in 2024 with an eye toward a takeover. In response, Commerzbank cut thousands of jobs and raised its financial targets in an attempt to win shareholder support for remaining independent. Those efforts ultimately failed, and in late July, as UniCredit closed in on a controlling stake, Commerzbank CEO Bettina Orlopp called for constructive talks with the Italian lender.
UniCredit aims to build a European banking powerhouse capable of competing with larger US rivals, arguing that a merger would strengthen the region's fragmented banking sector. While resistance persists in Germany, some policymakers in Brussels and at the European Central Bank have expressed greater support for the potential deal.
